USA aims to make it harder for China’s contract manufacturers, led by SMIC, to access equipment and technologies for modern chip production.
The USA is Making it Difficult for China to Produce Modern Chips
For some time now, the USA has been working to make it significantly more difficult for China to produce modern chips. Considering the sanctions currently in force, it is difficult for Chinese contract manufacturers to produce on 14 nm or more advanced manufacturing technology.
Although the problem is not technically insurmountable, due to export restrictions, the possibilities for factory expansion are very limited. Therefore, already built capacity can only be increased under serious limitations which makes it difficult to recover investment costs.
According to information from DigiTimes (a Taiwanese news website), the USA is not satisfied with this and would like Chinese contract manufacturing – led by SMIC (Semiconductor Manufacturing International Corporation) – cut off from equipment and technologies needed for processes beyond 40 nm. The company mainly focuses on plants that provide 28 nm nodes after all since purchasing equipment required for more modern processes has become increasingly challenging. As a result of these actions taken by America’s government towards its trade war with China over intellectual property rights infringement issues such as stealing chip designs without permission; they have pushed roughly a decade behind in technological advancements compared against their peers located within East Asia region where innovation thrives at an accelerated pace.
This leaves no other option but speed up development efforts if they want any chance at competing globally again soon enough because current technological levels available domestically aren’t even competitive enough today – let alone capable of handling anything below node sizes larger than or equaling out at around 40nm dimensions!
The Impact On Chip Manufacturers
- Limited factory expansion possibilities due largely thanks exports restrictions put into place recently making building new facilities impractical financially speaking so existing ones must suffice;
- Inability purchase necessary machinery needed process semiconductors above certain size ranges prohibiting progress innovation output overall quality products manufactured here versus those made elsewhere including neighboring nations Japan South Korea Taiwan Singapore who boast far superior technologies across various sectors industries other areas too many mention individually each country possesses unique strengths weaknesses respectively giving rise different types goods services rendered locally vs internationally exported traded between countries worldwide economic networks;
The Way Forward For China’s Semiconductor Industry?
What should we expect next? It seems unlikely that American pressure will lessen anytime soon given how important semiconductor technology remains strategically significant both economically militarily geopolitical terms- therefore likely continued struggles ahead still yet foreseeable future unless something changes drastically alter status quo dynamic world stage affairs happening right now affecting everyone involved directly indirectly related businesses individuals alike whose livelihoods depend upon stability growth markets rely heavily upon tech industry performance outputs driven primarily through semiconductor production capabilities expertise abundantly found throughout East Asian nations collectively forming global supply chains interconnected webs reaching every corner globe imaginable connecting people cultures languages religions creeds races ethnicities backgrounds lifestyles beliefs values aspirations dreams hopes ambitions goals objectives seeking fulfillments material non-material achievements desires passions hobbies interests causes concerns challenges facing humanity today tomorrow ready take risks innovate experiment develop bold ideas concepts solutions address pressing problems plaguing societies everywhere ultimately striving better lives futures generations come long haul journey never truly ends always evolving adapting changing improving along way driving forward ever onward towards brighter tomorrow anew!